Chapter C, Problem 13QS

To determine

Concept introduction:

Days’ payable outstanding:

Days’ payable outstanding tells about the number of days a company takes to repay its’ creditors. In other words we can say that it shows relationship between accounts payable and cost of goods sold. Low number of days shows that a company is paying creditors quickly but higher the number of days shows that a company is not able to pay creditors quickly.

Days’ payable outstanding.